We need to know more about governance in cultural nonprofit organisations (NPOs). Can good governance prevent financial crises in arts organisations? A vast research project has helped find the answers. Lack of artistic success is not the main cause of financial distress. NPOs in financial distress often have weak governing processes. Their board members need to know more about the problems leading to the crisis. We propose a governance framework to better monitor NPOs’ external and internal environments. Then we present the reactions to this governance framework from interviews with NPO managers. Finally, we report results from arts organisation consultancy and reconcile these findings with the ones collected through interviews.

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